New Productivity Commission report confirms workers need a pay rise


The Public Service Association (PSA) says a new Productivity Commission report clearly shows that workers have not reaped the benefits of increased productivity over the past 30 years, in contrast to government rhetoric that productivity is the only way to see pay rise.

Erin Polaczuk, PSA national secretary, said “This report clearly shows that productivity has doubled since 1978 while pay increases are significantly lower,”


“Workers across the country are struggling with the rising cost of living, and productivity-related excuses for low pay rises are no longer acceptable.


“A significant percentage of the PSA’s 59,000 strong membership is in bargaining this year, and the Government has a chance to make a meaningful difference to the lives of tens of thousands of hard-working New Zealanders.


“The share of GDP that workers receive has shrunk considerably since 1978, and this needs to change.


“When the Government’s own Productivity Commission is saying this, Bill English and his colleagues must sit up and listen,” said Erin Polaczuk.




Who benefits from productivity growth? The labour income share in New Zealand